Latest news with #SaraRossi
The Star
09-05-2025
- Business
- The Star
Italy's Moltiply sues Google in 3 billion euro lawsuit over market dominance
FILE PHOTO: A Google logo is seen at the company's headquarters in Mountain View, California, U.S., November 1, 2018. REUTERS/ Stephen Lam/File Photo MILAN (Reuters) -Italy's Moltiply Group said on Friday it was suing Alphabet's Google and seeking damages of 2.97 billion euros ($3.34 billion) for abuse of its dominant market position as previously recognised by the EU Court of Justice. Moltiply operates the popular Italian price comparison website Its claim argues that Google's actions hindered the growth of its subsidiary 7Pixel between 2010 and 2017, favouring Google Shopping instead, Moltiply said in a statement. The claim was filed at a Milan court, Italian daily Corriere della Sera said without giving further details. "We disagree strongly with these exorbitant private damages claims which disregard this successful and growing industry," a spokesperson for Google said in a statement in response to a Reuters request for comment. The European Commission fined Google, the world's most popular internet search engine, in 2017 for using its own price comparison shopping service to gain an unfair advantage over smaller European rivals. In September, the company lost a final appeal against the 2.42 billion euro fine. "The changes Google made in 2017 following the European Commission's decision are working as intended and the number of comparison shopping sites in Europe using our shopping features has multiplied from just 7 to more than 1,550", the Google spokesperson added. ($1 = 0.8894 euros) (Reporting by Sara Rossi, Elvira Pollina, editing by Alvise Armellini, Kirsten Donovan)
Yahoo
06-04-2025
- Business
- Yahoo
Trump's 20% tariff clouds future of Italian wines in US
By Sara Rossi VERONA, Italy (Reuters) - The outlook for Prosecco, Brunello di Montalcino and other Italian wines in the United States is increasingly gloomy, producers and importers said, following President Donald Trump's imposition of a 20% tariff on European imports. Italy exports more wine to the U.S. than any other country. Last year, it sold 2 billion euros ($2.2 billion) worth of wines, spirits and vinegars in the U.S. market, a quarter of its total worldwide exports, according to trade group Federvini. Italian producers and U.S. importers gathered at a wine fair in Verona, in the north-eastern Veneto region this weekend, said business had already been hit by the fear of U.S. tariffs and things could only get worse as they come fully into effect. Under the announced levies, Italian wine revenues would fall by some 323 million euros per year, said Lamberto Frescobaldi, chairman of the Italian Wine Union lobby. Wine traders and producers are pinning their hopes on a deal between Europe and the U.S. to scrap or reduce the tariffs. "Hopefully, the EU will not retaliate - a trade war would be difficult to navigate," Simone Luchetti, president of U.S. importer Banville, told Reuters at the Vinitaly fair in Verona. While the sector was spared the 200% tariff Trump had threatened to impose, it remains a threat if European counter-measures target U.S. spirits, such as bourbon whiskey. CONSUMPTION TO PLUNGE Luchetti - who imports Brunello, Amarone, Prosecco and Barolo among others - estimated a 25-35% drop in U.S. consumption and in Banville's revenues under current tariffs. Other importers warned that some wine brands would disappear from the U.S. market as consumers looked for cheaper bottles. "If the price of a wine increases, consumers will probably leave that brand. They will rather stay within their preferred price range," said Charles Lazzara, founder of U.S. buyer Volio Imports. Under the announced levies the cost of a bottle of mid-range Prosecco, Lazzara said, would rise from $10.99 to $12.99 in U.S. shops. Luchetti echoed those concerns. "It will probably become difficult to sell Prosecco bottles which today cost $14-18 because their price will rise to $20," Luchetti said. The U.S. tariffs also worried Italian producer Marilisa Allegrini, founder of the Marilisa Allegrini Group, which produces 840,000 bottles per year, including Brunello di Montalcino, Bolgheri, Valpolicella and Amarone. "Wine consumption in the U.S. was already in crisis, and tariffs have hit it further," she said. Some Italian producers, however, were more upbeat, saying U.S. drinkers love Italian wines and are unlikely to replace them with cheaper alternatives, despite the tariffs. "Prosecco can only be produced in Italy, especially in Veneto - it can't be replaced!" said Giancarlo Moretti-Polegato, owner of Villa Sandi, a prosecco producer based in the hills of Montebelluna, in the Veneto region.($1 = 0.9059 euros)
Yahoo
06-04-2025
- Business
- Yahoo
Trump's 20% tariff clouds future of Italian wines in US
By Sara Rossi VERONA, Italy (Reuters) - The outlook for Prosecco, Brunello di Montalcino and other Italian wines in the United States is increasingly gloomy, producers and importers said, following President Donald Trump's imposition of a 20% tariff on European imports. Italy exports more wine to the U.S. than any other country. Last year, it sold 2 billion euros ($2.2 billion) worth of wines, spirits and vinegars in the U.S. market, a quarter of its total worldwide exports, according to trade group Federvini. Italian producers and U.S. importers gathered at a wine fair in Verona, in the north-eastern Veneto region this weekend, said business had already been hit by the fear of U.S. tariffs and things could only get worse as they come fully into effect. Under the announced levies, Italian wine revenues would fall by some 323 million euros per year, said Lamberto Frescobaldi, chairman of the Italian Wine Union lobby. Wine traders and producers are pinning their hopes on a deal between Europe and the U.S. to scrap or reduce the tariffs. "Hopefully, the EU will not retaliate - a trade war would be difficult to navigate," Simone Luchetti, president of U.S. importer Banville, told Reuters at the Vinitaly fair in Verona. While the sector was spared the 200% tariff Trump had threatened to impose, it remains a threat if European counter-measures target U.S. spirits, such as bourbon whiskey. CONSUMPTION TO PLUNGE Luchetti - who imports Brunello, Amarone, Prosecco and Barolo among others - estimated a 25-35% drop in U.S. consumption and in Banville's revenues under current tariffs. Other importers warned that some wine brands would disappear from the U.S. market as consumers looked for cheaper bottles. "If the price of a wine increases, consumers will probably leave that brand. They will rather stay within their preferred price range," said Charles Lazzara, founder of U.S. buyer Volio Imports. Under the announced levies the cost of a bottle of mid-range Prosecco, Lazzara said, would rise from $10.99 to $12.99 in U.S. shops. Luchetti echoed those concerns. "It will probably become difficult to sell Prosecco bottles which today cost $14-18 because their price will rise to $20," Luchetti said. The U.S. tariffs also worried Italian producer Marilisa Allegrini, founder of the Marilisa Allegrini Group, which produces 840,000 bottles per year, including Brunello di Montalcino, Bolgheri, Valpolicella and Amarone. "Wine consumption in the U.S. was already in crisis, and tariffs have hit it further," she said. Some Italian producers, however, were more upbeat, saying U.S. drinkers love Italian wines and are unlikely to replace them with cheaper alternatives, despite the tariffs. "Prosecco can only be produced in Italy, especially in Veneto - it can't be replaced!" said Giancarlo Moretti-Polegato, owner of Villa Sandi, a prosecco producer based in the hills of Montebelluna, in the Veneto region.($1 = 0.9059 euros)
Yahoo
04-04-2025
- Business
- Yahoo
Analysis-Italy defence drive could derail debt, hit ratings
By Sara Rossi and Valentina Consiglio MILAN (Reuters) - Italy's pledges to increase defence spending to help Ukraine could scupper government efforts to rein in the mammoth public debt, analysts say, posing a threat to the creditworthiness of the euro zone's third-largest economy. A European Union drive to hike military expenditure, in response to the Trump administration's moves towards a rapprochement with Russia and warnings that European security can no longer be its primary focus, is set to strain budgets around the bloc. Italy, however, with its extremely low defence spending, heavy debt load and the euro zone's highest borrowing costs, is in a particularly difficult position. Rome currently spends around 1.5% of gross domestic product on defence, one of the lowest levels in the EU alongside Spain, Portugal and Belgium. Raising that to 3% over the next four years, as urged by the European Commission, would mean finding an extra 30-35 billion euros ($38 billion), either through extra borrowing or spending cuts. It is a tough choice that will be closely watched by financial markets and credit ratings agencies focused on the trajectory of the euro zone's second-largest public debt pile. "If this additional expenditure is financed through new debt issuance, it would weigh on Italy's already strained fiscal outlook," said Eiko Sievert, executive director at Scope Ratings. RATINGS TESTS Italy faces more than a month of ratings reviews by all the main agencies, beginning with Fitch on Friday. Until recently, Rome harboured hopes of upgrades, but these have been dimmed by a weakening economy and the risk of a defence-driven rise in its debt, which at some 135% of GDP is second only to Greece in the 20-nation euro zone. "We have Italy on a positive outlook, but one of the negative sensitivities we have is a potential change in our assessment of the debt trend," said Federico Barriga-Salazar, senior director, sovereigns at Fitch. Italy's debt is currently targeted to rise to almost 138% in 2026 due to the lagged effect of a costly state-funded scheme to boost energy-saving home improvements, before declining steadily from 2027. However, the European Commission's plans for EU-wide increases in defence spending would mean Italy's debt continuing to climb to around 145% by 2029, according to calculations by Scope Ratings, which will review Italy on May 23. Italy's domestic politics is also muddying the picture. How, and even whether, to boost the defence budget as promised to Brussels is a growing source of tension in Giorgia Meloni's three-party coalition and threatens the political stability that has so far reassured markets. Economy Minister Giancarlo Giorgetti, from the far-right League party, said last month he was against increasing public debt but any extra defence spending must also not be funded to the detriment of health spending or public services. Meloni has taken a non-committal stance and stressed the importance of keeping a lid on debt. RISING YIELDS Italy, which spent some 100 billion euros, or 4.5% of GDP, on debt servicing in 2024, has seen its bond yields rise sharply over the last month, alongside those of its euro zone peers, as the prospect of a German-led run-up in defence spending increased. The yield on Rome's benchmark 10-year BTPs hit an eight-month high last month above 4%. A further increase in borrowing costs would complicate the Treasury's already challenging debt management efforts. "If this repricing is not reversed, it could lead to a less-favourable path for interest rates, interest expenditure and budget deficits from this year," said Loredana Federico, Chief Italian Economist at UniCredit. Analysts declined to speculate on what level of increased spending and debt might trigger a sell-off of Italian bonds, which already carry higher yields than those of any other euro zone country - a sign of the risk premium demanded by investors. Some supporters of an arms drive say it could trigger a sufficient boost to economic activity to make it largely self-financing, but this idea is played down by most economists. S&P Global said in a report on EU rearmament that it was "unlikely to spur economic growth" due to the import-intensive, fragmented and inefficient nature of the bloc's defence industry. Italy's sluggish economy eked out growth of 0.1% in the fourth quarter of 2024 from the previous three months after stagnating in the third quarter. No near-term pick-up is expected. Italy's business lobby Confindustria on Wednesday cut its 2025 GDP growth forecast to 0.6%, down from a 0.9% estimate made in October and just half the government's official 1.2% target. According to Bank of Italy Governor Fabio Panetta, any defence-driven growth boost would only be short-lived. "The manufacturing of war equipment does not help increase a country's growth potential," he said in a speech in January as the EU's rearmament plans began to take shape. ($1 = 0.9133 euros) (Graphics by Stefano Bernabei, editing by Gavin Jones and Alex Richardson)
Yahoo
06-03-2025
- Business
- Yahoo
Analysis-Italy looks to foreigners as retail bond market loses steam
By Sara Rossi MILAN (Reuters) - Italy's campaign to put more of its huge public debt in the hands of small domestic savers will grow increasingly difficult, analysts say, but foreign investors lured by Rome's political stability and improving finances can plug any funding gap. Italy has been courting retail investors since the euro zone debt crisis in 2012 in the belief that they are less likely to withdraw their cash than foreigners at times of market stress. The strategy has been successful, raising around 245 billion euros ($257.52 billion) in a succession of bond issuances dedicated to the sector. The proportion of Italy's 3-trillion-euro debt - the second largest in the euro zone - in the hands of these small savers rose to nearly 15% in November from 13.5% a year earlier, according to the latest Bank of Italy data. That compares with 31% in the hands of foreign investors. Most recently, the Treasury raised 14.9 billion euros in February from the sale of a new 8-year "BTP Plus" retail bond, in the mid-range of two similar instruments issued last year. But analysts say that with Italians' savings eroded by the surge in inflation in 2022-23 and European Central Bank interest rates declining, the appetite of ordinary citizens for these bonds, which reached a peak two years ago, is set to dwindle. "After the high retail issuance volume in recent years, a large proportion of available savings from retail investors should already be invested, limiting the amounts that can be raised in the future," said Hauke Siemssen, interest rate strategist at Commerzbank. He said it was unlikely that this year Rome could match the almost 30 billion euros raised in dedicated bonds for small savers in 2024. That was down from almost 44 billion in 2023. UniCredit strategists Luca Cazzulani and Francesco Maria Di Bella estimated that net households' contribution - including retail bonds and other government bonds - to Italy's financing needs would amount this year to around 50 billion euros, roughly in line with 2024 but far below the 130 billion in 2023. DWINDLING DEPOSITS In a sign of small savers' diminishing investment potential, Italians' deposits with domestic banks stood at 2.3 trillion euros in December, near their lowest level since February 2017. That was down from a record high of 2.86 billion in April 2022 when household savings were flush after the limited spending opportunities during the COVID-19 pandemic. With gross financing needs of up to 350 billion euros and the ECB having fully ended its PEPP bond-purchasing programme in December, Italy needs to compensate with other funding sources. Several analysts said foreign investors can provide the answer, encouraged by Italy's relatively high bond yields, uncharacteristic political stability and falling budget deficit. The trend is already in place. In November, foreign holdings of Rome's government bonds reached their highest level since the launch of the euro in absolute terms at 771.421 billion euros. Commerzbank's Siemssen sees further upside potential. "Rome may be able to attract more foreign investors if the government's fiscal consolidation efforts succeed," he said. The latest signs are positive. Data this week showed Italy's 2024 budget deficit plunged to 3.4% of output from 7.2% the year earlier, well below the government's 3.8% goal and almost in line with the 3.3% targeted for this year. Moreover, Prime Minister Giorgia Meloni is riding high in opinion polls after two-and-a-half years in office, making Rome a source of political stability in Europe and belying its reputation for revolving door governments. DANGER AHEAD? The danger is that sooner or later Italy will be hit by another market rout. For all the current stability and fiscal progress, Italian bonds still yield more than those of any other euro zone country because investors demand a risk premium for holding them. Memories remain vivid in Rome of the 2011 turmoil when a sell-off by foreign investors brought down the government of Silvio Berlusconi as the spread between Italian and German 10-year yields widened to more than 500 basis points. The word "spread", hitherto unknown to ordinary Italians, became widely used in the country, as it still is today. Yet for now Italy's policymakers are happy to welcome the rise in foreign debt purchases as a vote of confidence in their economic management. Recent Italian syndicated bond sales have seen a marked increase in demand from foreigners, whose 31% of total debt holdings in November was up from 27.7% a year earlier. "We expect a consolidation of the foreign share going forward given the improvement in the political situation," said Annalisa Piazza, fixed income research analyst at MFS Investment Management. UniCredit's Cazzulani and Di Bella took a similar view, saying in a note to clients that foreigners "are likely to be still underweight BTPs relative to pre-COVID." Piazza said Italy's fiscal consolidation may also be rewarded at some point by a debt upgrade from ratings agencies, which would stoke further foreign interest. "Some insurances and pension funds will take advantage of the relatively steep Italian curve to buy longer dated BTPs," she said. ($1 = 0.9514 euros) Sign in to access your portfolio
